RBI announces rules for allowing transfer of money between mobile walletsHave you ever been irritated that you cannot transfer your Paytm wallet money meant for Uber rides to Ola Money to pay for Ola ride? Well, now you have a reason to smile. The Reserve Bank has issued guidelines for inter-operability for prepaid payment instruments (PPI) like mobile wallets.

Interoperability is the technical compatibility that enables a payment system to be used in conjunction with other payment systems. Interoperability allows PPI Issuers, System Providers and System Participants in different systems to undertake, clear and settle payment transactions across systems without participating in multiple systems. This is applicable for wallets and cards. It is understood that PPI issuers shall facilitate all basic / standard features of interoperability of UPI.

“In order to prepare better for implementation of interoperability, consolidated guidelines for enabling all phases are enclosed. Participating PPI issuers, who choose to adopt interoperability shall ensure adherence to the enclosed guidelines, in addition to the instructions on KYC, security for transactions and application life cycle, cyber security, fraud prevention and risk management…,” said RBI.

The central bank said that banks shall also be guided by the RBI circulars DBS.CO/CSITE/BC.11/33.01.001/2015-16 dated June 2, 2016 on ‘Cyber Security Framework in Banks’ and DBS.CO.ITC.BC.No.6/31.02.008/2010-11 dated April 29, 2011 on ‘Working Group on Information Security, Electronic Banking, Technology Risk Management and Cyber Frauds – Implementation of Recommendations’, as applicable.

“Furthermore, all participating PPI issuers shall be guided by the technical specifications / standards / requirements for achieving interoperability through UPI and card networks as per the requirements of National Payments Corporation of India (NPCI) and the respective card networks. NPCI and card networks shall facilitate participation by PPI issuers in UPI and card networks,” the RBi said.

These guidelines have been issued under Section 18 read with Section 10(2) of the Payment and Settlement Systems Act, 2007.

Payment players welcomed the move.

“We welcome and thank RBI for issuing final interoperability guidelines for PPIs. This is very progressive move for non-bank players and huge foundations to reach under-banked and unbanked with equally powerful Payment product in league of Debit/Credit Cards. Also now UPI would be accessible to large masses even those who are not banked or are under-banked,” said Navin Surya, Chairman Emeritus, Payments Council of India. Chairman, Fintech Convergence Council.

To read RBI norms: click here

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This article is written by RupeeIQ editorial staff.